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Private Players Disrupt Milk Market, Causing Partial Shortage in Bulk Supply

Bobby by Bobby
March 14, 2023
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Private Players Disrupt Milk Market, Causing Partial Shortage in Bulk Supply

-KH News Desk (cbedit@imaws.org)

The dairy industry in Karnataka has been hit by reduced milk production due to the annual lean season.

The Karnataka Milk Federation (KMF) is facing a shortage of bulk milk supply in Bengaluru due to reduced milk production caused by the annual lean season. Private players buying milk from the retail market to sustain their businesses in milk products have disrupted the KMF’s milk supply chain. While the KMF can supply milk to its retail customers, its bulk customers, particularly the hotel industry, have been badly affected in the last two weeks.

The non-availability of green fodder and heat have led to a decline in milk production. Private businesses purchasing Nandini milk have put pressure on the market, and some private milk dairies have bought KMF’s milk at ₹39 per litre and sold it after repackaging it at over ₹48 per litre.  Bamul, which supplies a significant part of Bengaluru’s milk requirement, has been procuring about 12.9 lakh litres per day, compared to 14 lakh litres daily at the same period last year. Small milk producers have given up on rearing cows as it has become unsustainable. Kadepalli Nagaraj, a director in the Kolar Milk Union, blamed the KMF for the erratic supply, acknowledging the role of private dairies in procuring milk from farmers, especially in border villages.

Last year, during the peak of the flush season, the KMF procured 94 lakh litres of milk per day. However, the KMF is currently procuring 72 lakh to 74 lakh litres of milk daily across the state, which is approximately 1% less than the amount procured during the corresponding period last year.

According to sources from the KMF, there has been a national decrease in milk production of around 8%.

Tags: dairy industryDairy productsFood Supply ChainKarnataka Cooperative Milk Federationkarnataka milk federationMilkmilk manufactures
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